Moody's ups Mitsui O.S.K. Lines view to positive

Moody's Investors Service said it changed to positive from stable the outlook on the Baa1 senior unsecured and issuer ratings of Mitsui O.S.K. Lines, Ltd. and Baa1 senior unsecured debt ratings of its supported subsidiaries, Mitsui O.S.K. Finance plc and Euromol BV.

The change in outlook reflects Moody's view that Mitsui O.S.K. Lines is likely to further stabilize its cash flow generation and strengthen its financial flexibility, despite its intensive capital expenditure for fleet expansion, over the intermediate term.

After greatly increasing operating profit for the fiscal year that ended in March 2005, the company continued this growth - to Y173 billion - for the next fiscal year and projects that it will maintain a high level of about Y166 billion for the current fiscal year, which ends in March. Moody's said the company has achieved these results through its diversified and stable revenue sources and despite an increasingly severe shipping market environment caused by declining container freight and high fuel prices.

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